Hello. Can we benefit from both the Foreign Earn Income Exclusion and the Federal Income Deduction (12,200$ for a single filer). Meaning that the exclusion is up to 118,100$?
For example, if the FEIE does not cover 100% of the annual income, but when adding the 12,200$ Federal deduction it brings it to 0 (as below)
Foreign annual income $112,000
Foreign Income Exclusion - $105,900 (amount excluded)
Foreign annual income after FEIE : 6,100$
Federal Deduction: 12,200$
Taxable income: 0$
(that’s what TurboTax showed)
In that case, I guess we do not need to use the Foreign Tax Credit because Federal Tax seems to be 0 already. On other discussions, I’ve never read about the Federal Deduction, people just saying that Federal Tax will be calculated on the part exceeding the FEIE.
Thanks for your help.
